The average price of wholesale electricity in New England dropped to its sixth-lowest level on record in October, according to regional grid administrator ISO New England.
Power prices in October were $30.63, a 15 percent drop from the prices in both October 2013 and September 2014. ISO began keep track of power pricing 11 years ago.
October’s drop is in stark contrast to January’s wholesale prices, which were the highest on record. The swing between the two months is largely attributable to the volatility in the cost of natural gas, which generates more electricity in New England than any other fuel. In January, natural gas prices were high because of high demand for heating and electricity on a limited supply, but those prices were low in October because of less demand on a more abundant supply.
Regional wholesale prices are a contributor to what ratepayers ultimately pay for their electricity. Other factors including the cost of transmitting and delivering the power make up a significant portion as well.
